Intrinsic value of Noble Energy - NBL

Previous Close

$29.13

  Intrinsic Value

$4.74

stock screener

  Rating & Target

str. sell

-84%

Previous close

$29.13

 
Intrinsic value

$4.74

 
Up/down potential

-84%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of NBL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of Noble Energy (NBL) stock.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.68
  5.50
  5.45
  5.40
  5.36
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.17
  5.16
  5.14
  5.13
  5.11
  5.10
  5.09
  5.08
  5.08
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
Revenue, $m
  3,491
  3,683
  3,884
  4,094
  4,313
  4,543
  4,784
  5,036
  5,299
  5,576
  5,865
  6,169
  6,487
  6,820
  7,170
  7,537
  7,921
  8,325
  8,748
  9,192
  9,658
  10,147
  10,659
  11,198
  11,762
  12,355
  12,977
  13,631
  14,316
  15,036
  15,791
Variable operating expenses, $m
 
  6,545
  6,901
  7,274
  7,665
  8,073
  8,501
  8,948
  9,417
  9,908
  10,423
  10,962
  11,527
  12,120
  12,741
  13,393
  14,076
  14,793
  15,545
  16,334
  17,162
  18,030
  18,942
  19,898
  20,902
  21,955
  23,061
  24,221
  25,440
  26,718
  28,060
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  4,787
  6,545
  6,901
  7,274
  7,665
  8,073
  8,501
  8,948
  9,417
  9,908
  10,423
  10,962
  11,527
  12,120
  12,741
  13,393
  14,076
  14,793
  15,545
  16,334
  17,162
  18,030
  18,942
  19,898
  20,902
  21,955
  23,061
  24,221
  25,440
  26,718
  28,060
Operating income, $m
  -1,296
  -2,862
  -3,018
  -3,181
  -3,351
  -3,530
  -3,717
  -3,913
  -4,118
  -4,332
  -4,557
  -4,793
  -5,040
  -5,299
  -5,571
  -5,856
  -6,155
  -6,468
  -6,797
  -7,142
  -7,504
  -7,884
  -8,282
  -8,701
  -9,139
  -9,600
  -10,084
  -10,591
  -11,124
  -11,683
  -12,270
EBITDA, $m
  1,158
  -267
  -281
  -297
  -312
  -329
  -346
  -365
  -384
  -404
  -425
  -447
  -470
  -494
  -519
  -546
  -574
  -603
  -634
  -666
  -700
  -735
  -772
  -811
  -852
  -895
  -940
  -987
  -1,037
  -1,089
  -1,144
Interest expense (income), $m
  327
  301
  329
  358
  388
  420
  453
  487
  523
  561
  601
  643
  686
  732
  780
  830
  883
  938
  996
  1,057
  1,121
  1,188
  1,258
  1,331
  1,409
  1,490
  1,575
  1,664
  1,758
  1,857
  1,960
Earnings before tax, $m
  -1,772
  -3,163
  -3,347
  -3,539
  -3,740
  -3,950
  -4,170
  -4,400
  -4,641
  -4,894
  -5,158
  -5,436
  -5,727
  -6,031
  -6,351
  -6,686
  -7,038
  -7,406
  -7,793
  -8,199
  -8,625
  -9,071
  -9,540
  -10,032
  -10,548
  -11,090
  -11,659
  -12,255
  -12,882
  -13,539
  -14,230
Tax expense, $m
  -787
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -998
  -3,163
  -3,347
  -3,539
  -3,740
  -3,950
  -4,170
  -4,400
  -4,641
  -4,894
  -5,158
  -5,436
  -5,727
  -6,031
  -6,351
  -6,686
  -7,038
  -7,406
  -7,793
  -8,199
  -8,625
  -9,071
  -9,540
  -10,032
  -10,548
  -11,090
  -11,659
  -12,255
  -12,882
  -13,539
  -14,230

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,180
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  21,011
  20,926
  22,067
  23,259
  24,507
  25,813
  27,180
  28,611
  30,110
  31,680
  33,326
  35,050
  36,857
  38,752
  40,739
  42,823
  45,008
  47,300
  49,705
  52,227
  54,874
  57,651
  60,565
  63,623
  66,832
  70,200
  73,736
  77,446
  81,341
  85,429
  89,721
Adjusted assets (=assets-cash), $m
  19,831
  20,926
  22,067
  23,259
  24,507
  25,813
  27,180
  28,611
  30,110
  31,680
  33,326
  35,050
  36,857
  38,752
  40,739
  42,823
  45,008
  47,300
  49,705
  52,227
  54,874
  57,651
  60,565
  63,623
  66,832
  70,200
  73,736
  77,446
  81,341
  85,429
  89,721
Revenue / Adjusted assets
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
Average production assets, $m
  19,924
  21,019
  22,164
  23,362
  24,616
  25,927
  27,300
  28,738
  30,243
  31,821
  33,473
  35,205
  37,021
  38,924
  40,920
  43,013
  45,207
  47,510
  49,925
  52,459
  55,117
  57,906
  60,833
  63,905
  67,128
  70,512
  74,062
  77,790
  81,702
  85,808
  90,119
Working capital, $m
  477
  -674
  -711
  -749
  -789
  -831
  -875
  -921
  -970
  -1,020
  -1,073
  -1,129
  -1,187
  -1,248
  -1,312
  -1,379
  -1,450
  -1,523
  -1,601
  -1,682
  -1,767
  -1,857
  -1,951
  -2,049
  -2,153
  -2,261
  -2,375
  -2,494
  -2,620
  -2,752
  -2,890
Total debt, $m
  7,074
  7,656
  8,326
  9,027
  9,761
  10,529
  11,333
  12,174
  13,056
  13,979
  14,946
  15,960
  17,023
  18,137
  19,306
  20,531
  21,816
  23,163
  24,577
  26,061
  27,617
  29,250
  30,963
  32,761
  34,648
  36,629
  38,708
  40,889
  43,180
  45,584
  48,107
Total liabilities, $m
  11,723
  12,305
  12,975
  13,676
  14,410
  15,178
  15,982
  16,823
  17,705
  18,628
  19,595
  20,609
  21,672
  22,786
  23,955
  25,180
  26,465
  27,812
  29,226
  30,710
  32,266
  33,899
  35,612
  37,410
  39,297
  41,278
  43,357
  45,538
  47,829
  50,233
  52,756
Total equity, $m
  9,288
  8,622
  9,091
  9,583
  10,097
  10,635
  11,198
  11,788
  12,405
  13,052
  13,730
  14,441
  15,185
  15,966
  16,785
  17,643
  18,543
  19,488
  20,478
  21,518
  22,608
  23,752
  24,953
  26,213
  27,535
  28,923
  30,379
  31,908
  33,513
  35,197
  36,965
Total liabilities and equity, $m
  21,011
  20,927
  22,066
  23,259
  24,507
  25,813
  27,180
  28,611
  30,110
  31,680
  33,325
  35,050
  36,857
  38,752
  40,740
  42,823
  45,008
  47,300
  49,704
  52,228
  54,874
  57,651
  60,565
  63,623
  66,832
  70,201
  73,736
  77,446
  81,342
  85,430
  89,721
Debt-to-equity ratio
  0.762
  0.890
  0.920
  0.940
  0.970
  0.990
  1.010
  1.030
  1.050
  1.070
  1.090
  1.110
  1.120
  1.140
  1.150
  1.160
  1.180
  1.190
  1.200
  1.210
  1.220
  1.230
  1.240
  1.250
  1.260
  1.270
  1.270
  1.280
  1.290
  1.300
  1.300
Adjusted equity ratio
  0.409
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -998
  -3,163
  -3,347
  -3,539
  -3,740
  -3,950
  -4,170
  -4,400
  -4,641
  -4,894
  -5,158
  -5,436
  -5,727
  -6,031
  -6,351
  -6,686
  -7,038
  -7,406
  -7,793
  -8,199
  -8,625
  -9,071
  -9,540
  -10,032
  -10,548
  -11,090
  -11,659
  -12,255
  -12,882
  -13,539
  -14,230
Depreciation, amort., depletion, $m
  2,454
  2,595
  2,736
  2,884
  3,039
  3,201
  3,370
  3,548
  3,734
  3,928
  4,132
  4,346
  4,570
  4,805
  5,052
  5,310
  5,581
  5,865
  6,164
  6,476
  6,805
  7,149
  7,510
  7,889
  8,287
  8,705
  9,144
  9,604
  10,087
  10,594
  11,126
Funds from operations, $m
  891
  -568
  -610
  -655
  -701
  -749
  -799
  -852
  -907
  -965
  -1,026
  -1,090
  -1,156
  -1,226
  -1,299
  -1,376
  -1,457
  -1,541
  -1,630
  -1,723
  -1,820
  -1,922
  -2,030
  -2,142
  -2,261
  -2,385
  -2,515
  -2,652
  -2,795
  -2,946
  -3,104
Change in working capital, $m
  -460
  -35
  -37
  -38
  -40
  -42
  -44
  -46
  -48
  -51
  -53
  -56
  -58
  -61
  -64
  -67
  -70
  -74
  -77
  -81
  -85
  -89
  -94
  -98
  -103
  -108
  -114
  -120
  -125
  -132
  -138
Cash from operations, $m
  1,351
  -533
  -574
  -616
  -660
  -707
  -755
  -806
  -859
  -915
  -973
  -1,034
  -1,098
  -1,165
  -1,235
  -1,309
  -1,386
  -1,467
  -1,552
  -1,641
  -1,735
  -1,833
  -1,936
  -2,044
  -2,157
  -2,276
  -2,401
  -2,532
  -2,670
  -2,814
  -2,966
Maintenance CAPEX, $m
  0
  -2,460
  -2,595
  -2,736
  -2,884
  -3,039
  -3,201
  -3,370
  -3,548
  -3,734
  -3,928
  -4,132
  -4,346
  -4,570
  -4,805
  -5,052
  -5,310
  -5,581
  -5,865
  -6,164
  -6,476
  -6,805
  -7,149
  -7,510
  -7,889
  -8,287
  -8,705
  -9,144
  -9,604
  -10,087
  -10,594
New CAPEX, $m
  -1,541
  -1,095
  -1,146
  -1,198
  -1,253
  -1,312
  -1,373
  -1,438
  -1,506
  -1,577
  -1,653
  -1,732
  -1,816
  -1,903
  -1,996
  -2,093
  -2,195
  -2,302
  -2,415
  -2,534
  -2,658
  -2,789
  -2,927
  -3,072
  -3,224
  -3,383
  -3,551
  -3,727
  -3,912
  -4,106
  -4,311
Cash from investing activities, $m
  -431
  -3,555
  -3,741
  -3,934
  -4,137
  -4,351
  -4,574
  -4,808
  -5,054
  -5,311
  -5,581
  -5,864
  -6,162
  -6,473
  -6,801
  -7,145
  -7,505
  -7,883
  -8,280
  -8,698
  -9,134
  -9,594
  -10,076
  -10,582
  -11,113
  -11,670
  -12,256
  -12,871
  -13,516
  -14,193
  -14,905
Free cash flow, $m
  920
  -4,088
  -4,314
  -4,550
  -4,798
  -5,057
  -5,329
  -5,614
  -5,913
  -6,226
  -6,554
  -6,898
  -7,260
  -7,639
  -8,036
  -8,454
  -8,891
  -9,351
  -9,833
  -10,339
  -10,870
  -11,427
  -12,012
  -12,626
  -13,270
  -13,947
  -14,657
  -15,403
  -16,185
  -17,007
  -17,870
Issuance/(repayment) of debt, $m
  -587
  645
  671
  701
  734
  768
  804
  842
  881
  923
  967
  1,014
  1,063
  1,114
  1,168
  1,225
  1,285
  1,348
  1,414
  1,483
  1,556
  1,633
  1,713
  1,798
  1,887
  1,981
  2,079
  2,182
  2,290
  2,404
  2,523
Issuance/(repurchase) of shares, $m
  0
  3,614
  3,817
  4,030
  4,254
  4,488
  4,733
  4,990
  5,259
  5,541
  5,836
  6,146
  6,471
  6,812
  7,170
  7,545
  7,938
  8,351
  8,784
  9,238
  9,715
  10,216
  10,741
  11,292
  11,870
  12,478
  13,115
  13,784
  14,486
  15,224
  15,998
Cash from financing (excl. dividends), $m  
  -596
  4,259
  4,488
  4,731
  4,988
  5,256
  5,537
  5,832
  6,140
  6,464
  6,803
  7,160
  7,534
  7,926
  8,338
  8,770
  9,223
  9,699
  10,198
  10,721
  11,271
  11,849
  12,454
  13,090
  13,757
  14,459
  15,194
  15,966
  16,776
  17,628
  18,521
Total cash flow (excl. dividends), $m
  324
  171
  173
  181
  189
  198
  207
  217
  228
  238
  250
  262
  274
  288
  302
  316
  332
  348
  365
  383
  402
  421
  442
  464
  487
  511
  537
  563
  591
  621
  651
Retained Cash Flow (-), $m
  1,082
  -3,614
  -3,817
  -4,030
  -4,254
  -4,488
  -4,733
  -4,990
  -5,259
  -5,541
  -5,836
  -6,146
  -6,471
  -6,812
  -7,170
  -7,545
  -7,938
  -8,351
  -8,784
  -9,238
  -9,715
  -10,216
  -10,741
  -11,292
  -11,870
  -12,478
  -13,115
  -13,784
  -14,486
  -15,224
  -15,998
Prev. year cash balance distribution, $m
 
  1,117
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -2,326
  -3,644
  -3,849
  -4,064
  -4,289
  -4,525
  -4,772
  -5,031
  -5,302
  -5,587
  -5,885
  -6,197
  -6,525
  -6,868
  -7,228
  -7,606
  -8,003
  -8,419
  -8,855
  -9,313
  -9,794
  -10,298
  -10,828
  -11,383
  -11,966
  -12,578
  -13,221
  -13,895
  -14,603
  -15,346
Discount rate, %
 
  6.20
  6.51
  6.84
  7.18
  7.54
  7.91
  8.31
  8.72
  9.16
  9.62
  10.10
  10.60
  11.13
  11.69
  12.28
  12.89
  13.53
  14.21
  14.92
  15.67
  16.45
  17.27
  18.14
  19.04
  20.00
  21.00
  22.05
  23.15
  24.30
  25.52
PV of cash for distribution, $m
 
  -2,190
  -3,212
  -3,157
  -3,080
  -2,983
  -2,866
  -2,730
  -2,577
  -2,409
  -2,230
  -2,042
  -1,849
  -1,654
  -1,461
  -1,273
  -1,093
  -925
  -770
  -630
  -507
  -400
  -309
  -234
  -174
  -126
  -89
  -61
  -41
  -27
  -17
Current shareholders' claim on cash, %
  100
  77.6
  60.3
  46.8
  36.3
  28.1
  21.8
  16.9
  13.1
  10.2
  7.9
  6.1
  4.7
  3.6
  2.8
  2.2
  1.7
  1.3
  1.0
  0.8
  0.6
  0.5
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0

Noble Energy, Inc. is an independent energy company. The Company is engaged in crude oil, natural gas and natural gas and natural gas liquids (NGLs) exploration, development, production and acquisition. The Company's segments include: United States, including the onshore DJ Basin, Permian Basin, Eagle Ford Shale, Marcellus Shale and offshore deepwater Gulf of Mexico, as well as the consolidated accounts of Noble Midstream Partners LP (Noble Midstream Partners); Eastern Mediterranean, including offshore Israel and Cyprus; West Africa, including offshore Equatorial Guinea, Cameroon and Gabon, and Other International and Corporate, including new ventures, such as offshore the Falkland Islands, Suriname and Newfoundland. The Company's portfolio of assets is diversified through the United States and international projects and production mix among crude oil, natural gas and NGLs. Its business focuses on both the United States unconventional basins and certain global conventional basins.

FINANCIAL RATIOS  of  Noble Energy (NBL)

Valuation Ratios
P/E Ratio -12.6
Price to Sales 3.6
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 9.3
Price to Free Cash Flow -66
Growth Rates
Sales Growth Rate 9.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -48.3%
Cap. Spend. - 3 Yr. Gr. Rate -17.1%
Financial Strength
Quick Ratio 19
Current Ratio 0
LT Debt to Equity 75.5%
Total Debt to Equity 76.2%
Interest Coverage -4
Management Effectiveness
Return On Assets -3.6%
Ret/ On Assets - 3 Yr. Avg. -2.1%
Return On Total Capital -5.7%
Ret/ On T. Cap. - 3 Yr. Avg. -3.9%
Return On Equity -10.2%
Return On Equity - 3 Yr. Avg. -7.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 86.7%
Gross Margin - 3 Yr. Avg. 91.5%
EBITDA Margin 28.9%
EBITDA Margin - 3 Yr. Avg. 35.3%
Operating Margin -37.1%
Oper. Margin - 3 Yr. Avg. -32.3%
Pre-Tax Margin -50.8%
Pre-Tax Margin - 3 Yr. Avg. -29%
Net Profit Margin -28.6%
Net Profit Margin - 3 Yr. Avg. -27.2%
Effective Tax Rate 44.4%
Eff/ Tax Rate - 3 Yr. Avg. 21.1%
Payout Ratio -17.2%

NBL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NBL stock intrinsic value calculation we used $3491 million for the last fiscal year's total revenue generated by Noble Energy. The default revenue input number comes from 2016 income statement of Noble Energy. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NBL stock valuation model: a) initial revenue growth rate of 5.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.2%, whose default value for NBL is calculated based on our internal credit rating of Noble Energy, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Noble Energy.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NBL stock the variable cost ratio is equal to 177.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NBL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.3% for Noble Energy.

Corporate tax rate of 27% is the nominal tax rate for Noble Energy. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NBL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NBL are equal to 570.7%.

Life of production assets of 8.1 years is the average useful life of capital assets used in Noble Energy operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NBL is equal to -18.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9288 million for Noble Energy - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 489.705 million for Noble Energy is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Noble Energy at the current share price and the inputted number of shares is $14.3 billion.

RELATED COMPANIES Price Int.Val. Rating
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COMPANY NEWS

▶ Noble Energy inks multibillion-dollar deal to export natural gas from Israel to Egypt   [Feb-21-18 10:05AM  American City Business Journals]
▶ Oil Prices Diverge On Mixed Data   [03:00PM  Oilprice.com]
▶ Noble tops Street 4Q forecasts   [07:44AM  Associated Press]
▶ Noble Energy posts quarterly profit   [07:12AM  Reuters]
▶ [$$] Noble Energy, Israel's Delek to Supply Gas to Egypt   [Feb-19-18 05:37PM  The Wall Street Journal]
▶ [$$] Fieldwood Energy Files for Chapter 11 Bankruptcy Protection   [Feb-15-18 07:11PM  The Wall Street Journal]
▶ Houston co. files Ch. 11, will buy Noble Energys Gulf of Mexico assets   [03:15PM  American City Business Journals]
▶ 9 Best Energy Stocks To Own Before Earnings   [Feb-01-18 10:13AM  Benzinga]
▶ Noble Energy Declares Quarterly Dividend   [Jan-30-18 11:27AM  GlobeNewswire]
▶ Noble Energy to sell part of stake in offshore Israel asset for $800M   [09:00AM  American City Business Journals]
▶ Noble Energy Announces Tamar Sell-Down   [Jan-29-18 04:30PM  GlobeNewswire]
▶ Expectations for EQTs Upcoming Earnings   [Jan-25-18 04:58PM  Market Realist]
▶ Chesapeake Energys Stock Price Range Forecast   [04:55PM  Market Realist]
▶ Noble Energy Giving Us Numerous Buy Signals   [01:59PM  TheStreet.com]
▶ Chesapeake Energys Implied Volatility and Stock Price Range   [Jan-05-18 11:58AM  Market Realist]
▶ Why CNX is pumped about having midstream company on board   [Jan-04-18 03:05PM  American City Business Journals]
▶ Forecasting Chesapeake Energys Stock Price Range   [Dec-28-17 10:20AM  Market Realist]
▶ Weekly CEO Buys Highlight   [Dec-26-17 02:56PM  GuruFocus.com]
▶ CNX to rename Cone Midstream Partners   [09:53AM  American City Business Journals]
▶ [$$] Bulls in Noble Energy? Execs Are Buying Stock   [Dec-20-17 01:24PM  Barrons.com]
▶ Chesapeake Energys Stock Price Range: What Can We Forecast?   [Dec-19-17 03:35PM  Market Realist]
▶ [$$] Noble Energy Extends Deadline for Sale of Marcellus Venture Stake   [Dec-08-17 09:36PM  The Wall Street Journal]
▶ Chesapeakes Implied Volatility: Stock Price Range Forecast   [Dec-05-17 03:00PM  Market Realist]
▶ Weekly Top Insider Buys Highlight for the Week of Dec. 1   [Dec-03-17 10:54AM  GuruFocus.com]
▶ Noble Energy selling more assets in $340M deal   [Nov-27-17 09:10AM  American City Business Journals]
▶ Chesapeake Energys Stock Price Range Forecast   [03:10PM  Market Realist]
▶ Noble Energy, SRC Energy make a $608M deal for 30,200 DJ Basin acres   [Nov-08-17 07:15PM  American City Business Journals]
▶ IIROC Trading Resumption - AEP NBL.P LUM   [04:56PM  PR Newswire]
▶ Did Chesapeakes 3Q17 Revenue and Earnings Meet Expectations?   [Nov-06-17 07:41AM  Market Realist]
▶ Noble Energys Implied Volatility: Price Range Forecast   [Nov-03-17 07:31AM  Market Realist]
Financial statements of NBL
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